TORONTO, ONTARIO / ACCESSWIRE / July 11, 2014 / CardioComm Solutions, Inc. (TSX VENTURE:EKG) ("CardioComm Solutions" or the "Company") today announced that it will be conducting a non-brokered private placement equity financing under which it intends to issue up to 5,000,000 units at a price of $0.05 per unit for gross proceeds of up to $250,000. There is no minimum offering amount. Each unit will be comprised of one common share of the Company and one common share purchase warrant exercisable for two years for an additional share at a price of $0.07. The securities to be issued under the financing will be subject to a four month hold period. The terms of the financing are subject to the approval of the TSX Venture Exchange.
The Company intends to use the proceeds of the financing towards the development of next generation wireless ECG device products and expanded promotion of the GEMSTM WIN launch. The Company will provide additional updates as they are available.
The offer to purchase units is available to all security holders of the Company who held common shares on July 6, 2014 (shareholders resident in Ontario, Newfoundland and Labrador, and countries other Canada, will need to meet local jurisdiction requirements to participate). The offer will be open until July 31 2014. The aggregate acquisition cost to a subscribing shareholder relying on the prospectus exemption for existing security holders cannot exceed $15,000 unless that shareholder has obtained advice regarding the suitability of the investment from a registered investment dealer in the subscriber's jurisdiction. In completing the financing, the Company may utilize other available regulatory exemptions in addition to the existing security holders' exemption. If you are a security holder who is interested in participating, you should contact the Company by email at [email protected]. If the Company receives total subscriptions exceeding $250,000, the Company will fill subscriptions on a first come, first served basis.
In connection with the financing, Etienne Grima, Chief Executive Officer of the Company, has agreed to sell an aggregate of 2,000,000 common shares from his personal shareholdings to a private investor at a price of $0.05 per share for proceeds of $100,000. Mr. Grima intends to use all of the proceeds from the sale of these shares to purchase units under the financing.
The issuance of shares to Mr. Grima under the private placement is considered to be a related party transaction subject to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that the value of securities to be purchased by Mr. Grima under the private placement will not exceed 25% of the fair market value of the Company's market capitalization.
About CardioComm Solutions
CardioComm Solutions' patented and proprietary technology is used in products for recording, viewing, analyzing and storing electrocardiograms (ECGs) for diagnosis and management of cardiac patients. Products are sold worldwide through a combination of an external distribution network and a North American-based sales team. The Company has earned the ISO 13485 certification, is HPB approved, HIPAA compliant, and has received FDA market clearance for its software devices. CardioComm Solutions is headquartered in Toronto, Ontario, Canada, with offices in Victoria, B.C.
FOR FURTHER INFORMATION PLEASE CONTACT:
Etienne Grima, Chief Executive Officer
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of CardioComm Solutions and certain of the plans and objectives of CardioComm Solutions with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.